US Secretary of State Marco Rubio has said the era of free trade agreements is unlikely to return “for the foreseeable future”, signalling that Washington sees bilateral and reciprocal trade arrangements as a more viable path for expanding economic ties
WASHINGTON — US Secretary of State Marco Rubio has said the era of free trade agreements is unlikely to return “for the foreseeable future”, signalling that Washington sees bilateral and reciprocal trade arrangements as a more viable path for expanding economic ties.
Rubio made the remarks in Reykjavik when asked whether the United States was willing to explore a free trade agreement with Iceland.
“As far as free trade agreements are concerned, look, I think the era of free trade agreements for the foreseeable future is probably not going to be there,” Rubio said during a joint media availability with Icelandic Foreign Minister Thorgerdur Katrin Gunnarsdottir.
He made clear that his assessment was not specifically directed at Iceland.
“I mean, not with Iceland, but just in general writ large,” he said.
Rubio instead pointed to bilateral arrangements based on reciprocal trade as an area where Washington sees opportunities.
“Where I do think we have real opportunities is a bilateral trade agreement, bilateral trade, a reciprocal trade understanding between our countries,” he said.
Rubio said meetings aimed at pursuing such an arrangement between the United States and Iceland were already being organised before his visit.
“And it's my understanding that meetings to try to pursue and further that are being organized as already pre-existing to my visit, and hopefully those will be very positive,” he said.
The comments offered a broader indication of the administration’s approach to international trade as Rubio discussed opportunities to deepen economic relations with Iceland.
He said the two countries could expand investment and commercial cooperation in sectors where Iceland has specialised companies, including pharmaceuticals and biotechnology.
“There are companies here to do very unique things that we would like to see in the United States and there are companies in the United States that I think could find some real positive economic opportunities to invest and be a part of here,” Rubio said.
He said Washington wanted to organise visits by American businesses to Iceland to identify investment opportunities. Icelandic companies could similarly be encouraged to explore investment and markets in the United States.
Rubio said the US government and the two countries’ embassies could help connect businesses and investors.
“We want to use the government, our embassy, our presence here, your embassy in the United States, to connect and create that synergy,” he said.
“We will both benefit from it. You'll become more prosperous, we'll become more prosperous, and I think will only bind us together more closely.”
Rubio’s comments come as US trade policy increasingly emphasises reciprocity and bilateral negotiations rather than the broad tariff reductions traditionally associated with free-trade agreements.